Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Measurements By Level For Assets Measured At Fair Value On A Recurring Basis

A summary of fair value measurements by level for assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 is as follows:



	Level I		Level II			Level III		Total
June 30, 2019
Assets:
Cash equivalents	$	1,938	$	—		$	—	$	1,938
Fixed maturity securities, available-for-sale:
United States Government securities	—		417			—		417
Government sponsored securities	—		177			—		177
States, municipalities and political subdivisions	—		4,636			—		4,636
Corporate securities	—		8,632			297		8,929
Residential mortgage-backed securities	—		3,719			3		3,722
Commercial mortgage-backed securities	—		89			—		89
Other securities	—		1,651			11		1,662
Total fixed maturity securities, available-for-sale	—		19,321			311		19,632
Equity securities:
Exchange traded funds	510		—			—		510
Fixed maturity mutual funds	—		633			—		633
Common equity securities	44		33			—		77
Private equity securities	—		—			305		305
Total equity securities	554		666			305		1,525
Other invested assets, current	14		—			—		14
Securities lending collateral	—		565			—		565
Derivatives	—		24			—		24
Total assets	$	2,506	$	20,576		$	616	$	23,698
Liabilities:
Derivatives	$	—	$	(15	)	$	—	$	(15	)
Total liabilities	$	—	$	(15	)	$	—	$	(15	)

December 31, 2018
Assets:
Cash equivalents	$	1,815	$	—		$	—	$	1,815
Fixed maturity securities, available-for-sale:
United States Government securities	—		416			—		416
Government sponsored securities	—		108			—		108
States, municipalities and political subdivisions	—		4,785			—		4,785
Corporate securities	2		7,648			287		7,937
Residential mortgage-backed securities	—		2,744			6		2,750
Commercial mortgage-backed securities	—		67			—		67
Other securities	—		1,099			17		1,116
Total fixed maturity securities, available-for-sale	2		16,867			310		17,179
Equity securities:
Exchange traded funds	2		—			—		2
Fixed maturity mutual funds	—		557			—		557
Common equity securities	601		53			—		654
Private equity securities	—		—			313		313
Total equity securities	603		610			313		1,526
Other invested assets, current	21		—			—		21
Securities lending collateral	314		290			—		604
Derivatives	—		16			—		16
Total assets	$	2,755	$	17,783		$	623	$	21,161
Liabilities:
Derivatives	$	—	$	(17	)	$	—	$	(17	)
Total liabilities	$	—	$	(17	)	$	—	$	(17	)

Reconciliation Of The Beginning And Ending Balances Of Assets Measured At Fair Value On A Recurring Basis Using Level III Inputs

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the three months ended June 30, 2019 and 2018 is as follows:



	Corporate Securities			Residential Mortgage- backed Securities			Other Securities			Equity Securities			Total
Three Months Ended June 30, 2019
Beginning balance at April 1, 2019	$	297		$	6		$	14		$	297		$	614
Total gains (losses):
Recognized in net income	(3		)	—			—			2			(1		)
Recognized in accumulated other comprehensive loss	—			—			—			—			—
Purchases	30			—			—			14			44
Sales	(1		)	—			—			(8		)	(9		)
Settlements	(19		)	(1		)	(1		)	—			(21		)
Transfers into Level III	—			—			—			—			—
Transfers out of Level III	(7		)	(2		)	(2		)	—			(11		)
Ending balance at June 30, 2019	$	297		$	3		$	11		$	305		$	616
Change in unrealized gains included in net income related to assets still held at June 30, 2019	$	—		$	—		$	—		$	2		$	2

Three Months Ended June 30, 2018
Beginning balance at April 1, 2018	$	260		$	5		$	14		$	303		$	582
Total gains (losses):
Recognized in net income	1			—			—			7			8
Recognized in accumulated other comprehensive loss	(3		)	—			—			—			(3		)
Purchases	42			—			9			3			54
Sales	(11		)	—			—			(1		)	(12		)
Settlements	(23		)	—			—			—			(23		)
Transfers into Level III	38			—			4			—			42
Transfers out of Level III	—			—			(1		)	—			(1		)
Ending balance at June 30, 2018	$	304		$	5		$	26		$	312		$	647
Change in unrealized gains included in net income related to assets still held at June 30, 2018	$	—		$	—		$	—		$	7		$	7

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level III inputs for the six months ended June 30, 2019 and 2018 is as follows:



	Corporate Securities			Residential Mortgage- backed Securities			Other Securities			Equity Securities			Total
Six Months Ended June 30, 2019
Beginning balance at January 1, 2019	$	287		$	6		$	17		$	313		$	623
Total (losses) gains:
Recognized in net income	(4		)	—			—			—			(4		)
Recognized in accumulated other comprehensive loss	2			—			—			—			2
Purchases	63			—			2			21			86
Sales	(2		)	—			—			(29		)	(31		)
Settlements	(40		)	(1		)	(2		)	—			(43		)
Transfers into Level III	—			—			3			—			3
Transfers out of Level III	(9		)	(2		)	(9		)	—			(20		)
Ending balance at June 30, 2019	$	297		$	3		$	11		$	305		$	616
Change in unrealized losses included in net income related to assets still held at June 30, 2019	$	—		$	—		$	—		$	—		$	—

Six Months Ended June 30, 2018
Beginning balance at January 1, 2018	$	229		$	5		$	16		$	287		$	537
Total (losses) gains:
Recognized in net income	1			—			—			(232		)	(231		)
Recognized in accumulated other comprehensive loss	(2		)	—			—			—			(2		)
Purchases	62			—			9			258			329
Sales	(15		)	—			—			(1		)	(16		)
Settlements	(30		)	—			(1		)	—			(31		)
Transfers into Level III	59			—			4			—			63
Transfers out of Level III	—			—			(2		)	—			(2		)
Ending balance at June 30, 2018	$	304		$	5		$	26		$	312		$	647
Change in unrealized gains included in net income related to assets still held at June 30, 2018	$	—		$	—		$	—		$	38		$	38

Carrying And Fair Values By Level Of Financial Instruments Not Recorded At Fair Value On Consolidated Balance Sheet

A summary of the estimated fair values by level of each class of financial instrument that is recorded at its carrying value on our consolidated balance sheets at June 30, 2019 and December 31, 2018 is as follows:



	Carrying Value		Estimated Fair Value
			Level I		Level II		Level III		Total
June 30, 2019
Assets:
Other invested assets, long-term	$	3,719	$	—	$	—	$	3,719	$	3,719
Liabilities:
Debt:
Short-term borrowings	1,010		—		1,010		—		1,010
Commercial paper	900		—		900		—		900
Notes	17,207		—		18,349		—		18,349
Convertible debentures	179		—		1,042		—		1,042

December 31, 2018
Assets:
Other invested assets, long-term	$	3,726	$	—	$	—	$	3,726	$	3,726
Liabilities:
Debt:
Short-term borrowings	1,145		—		1,145		—		1,145
Commercial paper	697		—		697		—		697
Notes	17,178		—		17,145		—		17,145
Convertible debentures	191		—		1,030		—		1,030